Budget 2019: 10 key takeaways for startups and MSMEs

After the Economic Survey 2018-19 pointed towards the need to incentivise young firms to boost job creation, Finance Minister Niramala Sitharaman, announced various measures that will help bolster the startup and MSME ecosystem in the country.

From a TV channel for startups to interest subvention scheme for MSMEs found a mention in the Finance Minister's speech.

Here are 10 key takeaways for Startups and MSMEs:

1) Sitharaman proposed be start an exclusive TV channel for startups under Doordarshan bouquet to provide a platform for startups to disseminate information in the industry.

2) The Finance Minister said that under the interest subvention scheme, Rs 350 crore allocation is for 2% interest subvention to all GST registered MSMEs in the current year on all fresh and incremental loans.

3) Government also plans to open a payment portal for MSMEs. Investment in MSMEs will receive a big boost through the portal if the delays in payments to SMEs and MSMEs are eliminated.

4) Small retailers with an annual turnover of less than Rs 1.5 crore will get pension benefit under the Pradhaan Mantri Man Dhan Yojna. More than 3 crore shop owners will benefit for the scheme.

5) Loan of Rs 1 crore for MSMEs being cleared within 59 minutes through an online portal.

6) The startups and investors who file requisite declarations will not be subjected to any kind of scrutiny in respect of valuation of share premium. A mechanism of e-verification will be put in place and with this, the funds raised by startups will not require any tax scrutiny.

7) Faceless income tax assessment in electronic mode involving no human interface to be launched this year in a phased manner, to reduce taxpayer harassment.

8) The Finance Minister also announced that special arrangements will be made by CBDT for pending reviews and cases related to Startups.

9) Government will also take steps to augment the participation of women in the development of the country. Sitharaman proposed to expand self-help groups (SHG) to all districts and said one woman in every SHG will get a loan of up to Rs 1 lakh under Mudra Yojana.

10) Delivery startups like Zomato and Swiggy will see an increase in operational cost as the government proposed to increase Special Additional Excise duty and Road and Infrastructure Cess on diesel and petrol by INR 1 each.